Cirque Du Soleil: Can It Burn Brighter?
There are two ways to achieve a competitive advantage, the first one is through a price-based strategy and the second one is based on differentiation . Cirque du Soleil (CDS) is a prime example of differentiation. CDS created a “High end Circus” effectively re-inventing the circus as it was known. They created a new way of entertainment providing something unique that is valuable to buyers beyond simply offering a low price.
Over a period of two decades, CDS has achieved a remarkable success in creating and commercializing its ingenious class entertainment shows, they have developed a new segment in the market. While doing so, CDS as a company has gained a sustainable competitive advantage that needs to diligently preserve to maintain its leadership position in the future.
Upon analysis, CDS success and its sustainable competitive advantage could be attributed to the following primary factors: High entry barriers, strong power over suppliers, and strong power over buyers .
High Entry Barriers
Unique offering (product differentiation) - CDS unlike a typical circus, strived for uniqueness. In that quest, it created a niche by blending different aspects of the entertainment world. These creations are aimed at an audience of wide age ranges having variety of preferences and tastes. They have created a brand that has recognition among the world. CDS has won prestigious awards from different parts of the world and has developed a whole new concept of “high end Circus” in which still preserve the advantage of being the first mover, a Strategic Lock-in, in which a company achieves a proprietary position in its industry, it becomes an industry standard.
Government Barriers ? since its beginnings CDS has bei ...